# DK Goel Solutions for Class 12 Accountancy Vol 1 Chapter 4 Retirement or Death of a Partner

DK Goel Accountancy Class 12 Solutions Chapter 4 Retirement or Death of a Partner which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. Learn more concepts in Accountancy, however, the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.

### DK Goel Solutions Class 12 – Chapter 4 – Part A

Question 1

X, Y, and Z are associates sharing profits and losses in the ratio 3:2: 1. Calculate the new ratios when (i) X retires (ii) Y retires (iii) Z retires

Solution: The new ratio of the left partners will be calculated by striking out the share of the retiring partners. Therefore,

(i) When X retires, the new ratio between Y and Z is 2:1

(ii) When Y retires, the new ratio between X and Z is 3:1

(III) When Z retires, the new ratio between X and Y is 3:2

Question 2

A, B, and C are associates in a company sharing profits in the ratio 5:4:3. B retired and his share was distributed evenly between A and C. Determine the new profit-sharing ratio of A and C.

Solution: B’s share will be divided between A and C in the ratio of 1:1.

$A\, will\, gain\, \frac{1}{2}\: of\, \frac{4}{12}=\, \frac{2}{12}$

$Hence,\, A’s\, new\, share\, =\, \frac{5}{12}\, +\, \frac{2}{12}\, =\, \frac{7}{12}$

$C\, will\, gain\, \frac{1}{2}\, of\, \frac{4}{12}\, =\, \frac{2}{12}$

$Hence,\, C’s\, new\, share\, =\, \frac{3}{12}\, +\, \frac{2}{12}\, =\, \frac{5}{12}$

$New\, Ratio\, =\, A\frac{7}{12}\, :\, C\frac{5}{12}\, or\, 7:5$

Question 3

A, B, C, and D are associates sharing profits in the ratio of 3:4:3:2. On the retirement of C, the goodwill was valued at ₹6,00,000. A, B and D decided to show future profits equally. Pass the necessary journal entry for the retirement of goodwill.

Solution: Calculation of Gaining Ratio:

$Gaining\, Ratio\, of\, A\, =\, \frac{1}{3}\, -\, \frac{3}{12}\, =\, \frac{4-3}{12}\, =\, \frac{1}{12}$

$Gaining\, Ratio\, of\, B\, =\, \frac{1}{3}\, -\, \frac{4}{12}\, =\, \frac{4-4}{12}\, =\, 0$

$Gaining\, Ratio\, of\, D\, =\, \frac{1}{3}\, -\, \frac{2}{12}\, =\, \frac{4-2}{12}\, =\, \frac{2}{12}$

 Date Particulars L.F Dr. (₹) Cr. (₹) A’s Capita lA/c D’s Capital A/c Dr. Dr. 50,000 1,00,000 To C’s Capital A/c (C’s share of goodwill debited to the account of A and D in the gaining ratio 1:2) 1,50,000

Question 4

A, B and C were partners sharing profits in the ration of 5:4:3. C retired and his share was taken up by A and B in the ratio of 3:2. Find out the new ratio.

Solution:

C’s share will be divided between A and B in the ratio of 3:2

$A\, will\, gain\, \frac{3}{5}\, of\, \frac{3}{12}\, =\, \frac{9}{60}$

$Hence,\, A’s\, new\, share\, =\, \frac{5}{12}\, +\, \frac{9}{60}\, =\, \frac{34}{60}$

$B\, will\, gain\, \frac{2}{5}\, of\, \frac{3}{12}\, =\, \frac{6}{60}$

$Hence,\, B’s\, new\, share\, =\, \frac{4}{12}\, +\, \frac{6}{60}\, =\, \frac{26}{60}$

$New\, Ratio\, =\, A\frac{34}{60}\,:\, B\, \frac{26}{60}\, or\, 17:13$

Also Check: Important Questions for Retirement/Death of a Partner

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 DK Goel Accountancy Solutions Class 12 – Part A (Chapter wise) Chapter 1 Accounting for Partnership Firms – Fundamentals Chapter 2 Change in Profit Sharing Ratio Among the Existing Partners Chapter 3 Admission of a partner Chapter 5 Dissolution of a Partnership Firm

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